The Fed cut rates again this week, bringing the target range down another 25 bps. But the bigger headline wasn’t the cut — it was Powell’s attempt to calm markets by saying “AI is not a bubble.” That line matters, because it tells us where policy is now aimed: keeping the AI buildout financed, not cooling the economy.
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Stocks barely reacted to the cut, which had been priced in, but everything tied to AI infrastructure — power, grid, cooling, semiconductors — kept moving. The message was clear: the Fed may be cutting, but capital is still rushing to the same place.

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The AI Capital Loop Just Went From Equity Story to Debt Story

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The chart above shows something simple but important:
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• The same group of companies are now funding each other, buying from each other, and borrowing to keep the AI buildout going.
• Nvidia invests in OpenAI.
• OpenAI signs a $300B cloud deal with Oracle.
• Oracle turns around and buys tens of billions of Nvidia chips.
• AMD gives OpenAI the right to buy its stock.
• Microsoft funds both Nvidia and OpenAI.
• CoreWeave, Intel, and xAI plug into the same circle.
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And this week, the circle widened even further:
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• Nvidia invested $1B in Nokia.
• Nvidia partnered with Uber to scale autonomous freight and mobility.
• Nvidia + Lilly built a drug-discovery supercomputer.
• Nvidia + CrowdStrike teamed up on AI-powered cybersecurity agents.
• Nvidia + Oracle are building an AI supercomputer for the U.S. Energy Dept.
• Nvidia + Lucid are advancing Level 4 self-driving.
• Nvidia + Palantir (more below) are operationalizing military-grade AI.
• Nvidia + ServiceNow are expanding trusted AI workflows across enterprises.
• Nvidia + Pure Storage + Cisco announced AI “factories” for enterprise deployment.
• Nvidia + Zoom are fusing GPU models directly into cloud communications.
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This is no longer a “tech story.”
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It’s turning into a full-scale construction and financing project—one that requires power plants, land, data centers, and huge amounts of borrowed money.
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Morgan Stanley now estimates $2.9 trillion will be spent on data centers by 2028.
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Only about half of that can be paid for with the cash these companies are generating today. Who are the other winners?
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• EME, PWR, MYRG – for building and upgrading power systems
• VRT, ETN, GNRC, WCC, BE – for cooling, power distribution, and backup power
• CEG, CCJ, FCX – for nuclear power and the copper wiring inside every data center
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The other half will need to be financed — mostly through new debt.
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That’s the key shift:
AI isn’t just moving stock prices anymore — it’s reshaping the bond market, the power grid, and long-term capital flows.
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And that’s why Powell avoided using the word “bubble.”
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Once debt enters the picture, the system has to stay funded — not just hyped.

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